Let’s start from the beginning. We know that talking about finances can be complex, but it doesn’t always have to be. In this article, you’ll find key concepts, explained in a simple way, that can serve as a guide when managing your money.
Virtual wallet
In the country, more than 9 million people use virtual wallets, but do we know what they are? You probably have an idea, although it never hurts to review: they are a digital tool that allows you to send and receive money, pay for services, and make purchases in stores and on websites. With financial apps, doing these transactions in person is a thing of the past.
CBU and CVU: What are they and how do they work?
They’re spelled almost identically, with only one letter of each acronym changing. But be careful! They’re not the same. Let’s see what they’re all about…
- CVU: Identifies a non-bank virtual account, such as those provided by virtual wallets, fintech companies, or prepaid cards.
- CBU: corresponds to a bank account and is issued by a bank.
What do they have in common? They’re both unique keys and are used to make transfers.
What’s the difference? With CVU, you’ll be able to transfer and receive money, not only from bank accounts but also from other virtual wallets.
Relationship between savings and investment
What is savings?
Savings are the portion of total income that isn’t used during the current month. We can allocate it to a goal:
- Short term: vacation, changing your cell phone, or buying the laptop you want.
- Long-term: buying land, property, changing your car, or starting a business.
So far, so good, but we know that saving money in these times isn’t easy. So why is it so important to make the effort? Basically, it’s essential to have savings because they help us cope with unexpected events, whether it’s an emergency or replacing that broken appliance.
-Keep in mind that the earlier we start saving, the better! That way, we’ll have a significant nest egg for the future. And you know what’s most exciting? Those savings can be invested and generate profits.
And what is investment?
First of all, you should know that you don’t need to be a financial guru to invest your extra money. But it’s also very important to consider the following:
- Investment and risk go hand in hand. Why? Because investing involves handing over saved money with the goal of earning a future profit, without being certain of that increase.
On the positive side, and unlike savings, when you make an investment, you can achieve high returns and even beat inflation.
Now that you know a little more about the basics of personal finance, would you like to know what your investment profile is? And where you should invest your money? We’ll tell you soon!
